Software Circle PLC on Monday reported an increased loss as costs increased faster than revenue, but highlighted exclusive talks with acquisition targets.

Manchester-based printing and software company said in the six months to September 30, pretax loss widened to £1.9 million from £503,000 a year prior.

Revenue rose 41% to £8.2 million from £5.8 million. Staff costs increased 54% to £2.5 million from £1.6 million, while depreciation and amortisation costs increased to £1.8 million from £440,000. Costs from the impairment of assets stood at £1.4 million compared to no such cost a year prior.

Financial expenses ballooned to £979,000 from £117,000.

The company declared no dividend, unchanged from a year ago.

Looking ahead, the company said it is in exclusive discussions with acquisition targets with a collective turnover of around £3.6 million and adjusted earnings before interest, tax, depreciation and amortisation of £1.2 million.

‘Although the dip in revenue from our Nettl Systems business slightly dents our revenue run-rate, overall, trading and profitability remains in line with management expectations. Our search for vertical market software businesses continues as we look to quickly, but effectively, deploy the funds from our recent fundraise on acquisitions that meet our criteria. In that regard, our deal flow continues to look healthy,’ Software Circle said.

Software Circle shares were flat at 13.00 pence each on Monday afternoon in London.

Copyright 2023 Alliance News Ltd. All Rights Reserved.